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Innovating Buyer-Supplier Relationships in the Aerospace Industry: Performance-Based Contracting

By Karan Girotra,  Serguei Netessine,  Jean-Sebastien De Looz
Published 26 Jun 2017
Reference 6053
Topic Operations
Industry Airlines/Aviation,  Transportation/Trucking/Railroad
Region Global
Length 14 page(s)
Language English
Inspection copy
6.00
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Summary

The case presents a new business model in the jet engine industry - performance based contracting for jet engine maintenance. It explains the trade-offs, challenges and guidelines for successful implementation of these contracts, including direct and supply chain effects.

Teaching objectives

To illustrate a new business model, and highlight different contracting schemes.

Keywords
  • New business models
  • Performance-based contracting
  • Risk-driven business model
  • Contracting
  • Supply Chain Management
  • Aviation
  • Rolls-Royce
  • Maintenance
  • Incentives
  • Q41617
About the authors
Girotra

Karan Girotra

Netessine

Serguei Netessine

Jean-Sebastien De Looz


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